§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will make a statement on the achievements of(a) his policies and (b) his Department in helping small businesses over the last 12 months as against the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.
§ Mr. PortilloThe Government's economic policies are designed to maintain an environment in which business and enterprise can develop and prosper. The Treasury therefore places a high priority on helping small businesses. Developments in the last year include
595Wreduction of inflation to 1.2 per cent., its lowest level for nearly 30 years;reductions in interest rates since leaving the exchange rate mechanism which, when fully passed through, will be worth over £5 billion a year off companies' interest payments.In addition, the March Budget included:
further transitional help on business rates, worth £370 million, so that no business will face a real increase in rates in 1993–94;changes to the loan guarantee scheme to improve the supply of bank finance to small businesses;allowing VAT relief on bad debts after six months rather than a year;increases in the VAT registration threshold from £36,600 to £37,600 and in the turnover limit of the VAT cash accounting scheme from £300,000 to £350,000;reductions in VAT penalties on late returns and misdeclarations, and new flexibility in applying penalties; a new entrepreneurs' relief from capital gains tax where gains from the sale of a person's own business are reinvested in new businesses, and an extension of capital gains tax retirement relief.